Impact growth hurt by weaker euro

Villa constructor Impact Bucharest enjoyed an 11% growth in net profits for the first nine months of this year compared with the same period in 2003. Sales rose nearly 40%. For the same period, the company made 129bn ROL (3.1 million euros) in net profits and had sales of 601bn ROL (14.6 million euros). Company officials say the company has had to deal with an increase in the cost of the houses it builds resulting from the lower purchasing power of the euro. The cost of materials used by Impact rose 29% in the period of January to September 2004, while labour spending increased 4%. The company did see a growth in profits at the end of the third quarter, however, despite having seen its net income shrink at the end of the first half of the year. Impact is one of the most closely watched companies on the Bucharest Stock Exchange due to the significant growth in profits and high gains enjoyed by investors in recent years. Its yield was nonetheless lower than that of the overall stock market this year. ZF